Andrewe - if SMY, in your opinion, is a "better" company from an earnings perspective, then why doesn't ZFX just buy them at market prices?? "because they have made a takeover offer for AGM"
Currently SMY has a market cap of approximately $736 Million, AGM in contrast has a current market cap of $769 Million. By your rationale, SMY being a more desirable and profitable operation would be where ZFX should go correct? "i agree, but AGM has synergies for ZFX due to the proximity to other Tasmanian mines. is there any other tasmanian based miner that will gain those same synergies? if not then dont expect another offer."
Or are you missing something that the ZFX board aren't - that AGM is worth FAR MORE than SMY and as such, AGM is a more desirable investment? "ok lets say AGM far more valuable than SMY (with zero earnings and low grade nickel), then that makes JBM far more valuable than AGM becuase xstrata bought them and not AGM. so use of the $1.29 EV using JBM is clearly flawed.
cheers andrewe
AGM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
